News

Archive for February, 2010

Investors are showing renewed interest in event driven hedge funds that aim to profit from the uncertainty surrounding corporate events such as mergers, acquisitions, spinouts and bankruptcies.

More than half the $13.8 billion in new capital allocated to hedge funds in the final quarter of 2009 was invested in event driven strategies, such as merger arbitrage and distressed debt funds, according to Chicago-based Hedge Fund Research.
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So long as debt markets continue to improve, M&A activity will remain robust through 2010, adds Alex von Furstenberg, co-portfolio manager at Arrow Capital Management, a New York-based hedge fund that invests in event driven situations.

“Our analysis of balance sheets outside the financial sector suggests that many companies remained conservatively capitalised during the crisis and have sufficient resources to make accretive acquisitions or to be attractive buy-out candidates,” he says.
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Arrow Capital Management has always taken an opportunistic approach to event driven investing, says von Furstenberg. “Our mandate has never been to purely focus on spin-offs, distressed or merger arbitrage trades. We have invested in those situations only when we believed they had the best risk-reward characteristics,” he says.

He says Arrow is currently focused on what it sees as the mispricing of strong, multi-national companies, rather than traditional event driven opportunities. “In our opinion, the valuations of some high quality companies still do not reflect the strength and sustainability of their earning power, especially those companies with exposure to developing markets such as Brazil, Russia, India and China,” says von Furstenberg.
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The Malibu Search & Rescue (MSAR) Team has announced a personal gift from Alexander von Furstenberg which has financed the purchase of rescue equipment critical to their efforts.

MSAR is a non-profit, all volunteer organization comprised of Reserve Deputy Sheriffs and civilian volunteers who participate in the search and rescue of lost or injured persons within a 187 square mile section of the Santa Monica Mountains. The Team is affiliated with the Los Angeles County Sheriff’s Department and is a member of the Mountain Rescue Association.

Kevin Ryan, a 30-year member of the Team expanded upon MSAR’s volunteer efforts. “The Team responds to all types of rescues: Lost or missing persons, stranded hikers, downed aircraft and hang gliders, vehicles over the side, brush fires, natural disasters and river rescues. The Team also goes to schools in the area and gives search and rescue tips to the kids.”

Alex von Furstenberg’s $38,500 gift has enabled a complete outfitting of MSAR’s lead search vehicle. Said Ryan, “This contribution will allow our team to fully equip a new rescue truck with all of the tools needed for a search and rescue operation.”

Of his contribution, Alex von Furstenberg said, “I am pleased to help strengthen the efforts of these volunteers who selflessly donate their time in order to assist people in imminent danger. It is my hope that this equipment will help the Team ensure the safe rescue of all those who find themselves in unfortunate and urgent situations while exploring our community.”

Alexander, an avid kite-surfer and active outdoorsman, resides in Malibu with his family. In addition to his support of MSAR, Alex recently demonstrated his passion and concern for the well-being of his Southern-California community and its environment by pledging $150,000 over 3 years to sponsor Malibu’s comprehensive beach water quality program, the Beach Report Card. Backed by Alex’s family’s foundation, The Diller – von Furstenberg Family Foundation, and Co-sponsored by the non-profit organization Heal The Bay, the Beach Report Card is California’s only program dedicated to the extensive analysis of water quality along its coastline.